BRIEFS

Indian SMBs spent $317 million on printers in 2004

Total spending on printers by Indian small and medium businesses (SMBs) exceeded $300 million over the last 12 months, and is expected to grow at a compounded annual growth rate of roughly 22 percent over the next five years. The increased availability of low-cost printers coupled with the adoption and use of integrated printing solutions has resulted in significant cost savings to SMBs. The Indian SMB market is currently dominated by inkjet and dot matrix printers; however, many SMBs are adopting colour solutions as well. Today, 26 percent of MBs have adopted colour laser printers, which accounts for 12 percent of their current installed base.

These findings were released by the New York-based Access Markets International (AMI), a leading consulting firm that specialises in IT, Internet, telecommunications and business services market intelligence.

According to AMI’s study, total printer spending by Indian SBs amounted to $285 million in 2004. The manufacturing (28 percent), professional business services (20 percent) and other services (20 percent) sectors drove nearly 70 percent of this total spending.

Analysts predict a 24

percent growth in expenditure over the next five years. “The economy’s impact on the SB market during the last 12 months has been excellent,” said Partha Sengupta, analyst at AMI. Over 65 percent of all Indian PC SBs experienced an increase in their annual revenues during the last twelve months, with over one in four reflecting an annualised revenue growth rate exceeding 10 percent. The trend will continue in the next year as shown by AMI data, which revealed that 37 percent of PC-owning SBs plan to expand their workforce, and 9 percent of them expect to open new branches over the next year. Approximately 300,000 printers are likely to be purchased by Indian small businesses in the next 12 months. “Indian small businesses will play a significant role in total printer shipments over the next 12 months,” says Sengupta.

AMI’s study shows that 13 percent of Indian PC small businesses currently use colour laser printers. “The price of an entry-level laser has been slashed, and will likely attract the price-conscious small business market very soon,” observes Sengupta.

The price war among printer vendors has widened options for Indian medium businesses. This segment now has a range of printing devices to choose from within an affordable price range. Attempts to grab a larger share of the Indian printer market have forced companies to offer lower prices. Since the offtake from large corporations has slowed down, vendors are seeing tremendous growth opportunities for printers in the Indian SMB segment.

Total printer expenditure by Indian MBs amounted to $32 million in 2004. The manufacturing and FIRE / professional / other services sectors drove more than 85 percent of this spending. Though dot-matrix printers are the most highly penetrated (71 percent), followed by inkjets (70 percent), deployment of laser printers is quite significant among Indian medium businesses. Colour and monochrome lasers are used by 26 percent and 21 percent of India MBs respectively. “In the laser technology segment, increasing demand for colour printing equipment fuels constant competition among manufacturers and is leading to a decrease in the average sales price,” says Sengupta.